FTCDealers Regulation Rule

[FusedLogic]

Has anyone come across this? The FTC is about to clamp down on dealers with a lot of changes including having to show all fees in closing the deal in their advertised prices. Also, caping the stupid add-ons they charge hundreds of dollars for costing them just a few tens of dollars.

It's all on the FTC site here.

There's a lot to read but I got the gist of it from a YouTube channel Your Advocate Alliance.

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[lazynorse]

Regulating dealerships to impose financial transparency and consumer protection sounds good to me.

"But I don't want to be transparent... ugh, ugh, ugh, government overreach! Ugh, ugh.. !" That is the sole blubbering counter argument, which won't gain much sympathy.

 

[Trigganometry]

Love it. Consumer wins hands down on this one. Dealers are freaking out because they see the potential losses and know the shady tricks are worthless now. With the EV game about to begin it will definitely come into play way more

 

[LostMy65]

I do think it will translate to higher prices. How much of their profits came from those tactics? To make up for it, their asking price will most likely go up across the board.

 

[DukeCanBuildit]

This is very much like the “all-in price advertising” we have in Ontario, maybe in some other provinces as well. Basically, if you advertise the price (including putting a sign or the price on the car), it must include everything except sales tax and licensing - must include PDI, any duties or levies, delivery, etc.

There should also be no surprises or shenanigans in the sales office regarding admin fees, nitrogen, etching, alarm systems, gas, additional warranties, etc. because all that has to be included in the advertised price. If there are surprises, consumers are urged to walk away and report the business to the regulator.

As far as overreach goes, it’s not as if the government is prohibiting them from adding this stuff on - now, that would be overreach. They can add on whatever they like - this just makes them disclose it all up front. A bunch of crap added to a window sticker with a Sharpie or a sign on the the windshield that’s $2,000 more than the window sticker doesn’t look good, so these games are largely avoided. No more squeezing a couple thousand extra bucks out of the customer after they’ve already made the decision to buy.

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[FusedLogic]

I do think it will translate to higher prices. How much of their profits came from those tactics? To make up for it, their asking price will most likely go up across the board.

We're headed for higher prices anyway. The whole dealership model is changing to where you won't walk in an expect a nice discount. It will be sticker and that's it unless you can get a couple of freebies thrown in to close the deal. Now is a good time for the feds to make these kinds of changes.

 

[FusedLogic]

This is very much like the “all-in price advertising” we have in Ontario

I hope the FTC is looking at what Ontario does. Learn from someone else's experience.

 

[Radioman]

This is just a release from the FTC in which it "seeks comment on this notice of proposed rulemaking (“NPRM”) related to the sale, financing, and leasing of motor vehicles by motor vehicle dealers. " It is not a "done deal" by any means. You can bet that some deep pockets will be reaching out to their representatives in DC to try to steer any new rulings against the current practices.

It is sad that common sense isn't always followed when money (or the loss of) is involved. I do hope that we consumers win out but until the new rulings are made, it might be a good time to for you to communicate with your representatives.

 

[Joeiconic]

Related topic

https://www.npr.org/sections/money/...erships-and-the-shady-economics-of-car-buying

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